German Software Company, SAP, Leaves Russia

JAKARTA - German business software group SAP plans to exit Russia completely in response to Moscow's invasion of Ukraine. Although on Tuesday, April 19 they stated it was still possible for Russian users to run their software for years without support.

SAP joins a long list of companies, including rival Oracle, which last month stopped selling its services and products in Russia. Companies from telecommunications equipment maker Nokia to Goldman Sachs have also left Russia entirely.

The German maker of software for business process management does not provide any support or updates to customers in sanctioned countries. This was said by SAP's Chief Financial Officer, Luka Mucic, to reporters by telephone. He also added that the full impact of these actions may take time.

“There is no magic red button that SAP can press to make this software license disappear from the computer,” Mucic told Reuters, of the SAP software, which is sold as licensed software or on a subscription basis via the cloud.

Western countries have responded to Russia's invasion of Ukraine on February 24 by imposing sanctions on a number of companies and individuals linked to the Kremlin.

As part of the cloud shutdown, SAP has also given unsanctioned companies the option of having their data deleted, sent to them, or migrated to data centers outside Russia.

"Russian cloud customers who have chosen the migration path, we will not renew their existing cloud subscriptions when they come for renewal," Mucic said. He added that this contract lasts an average of more than three years.

SAP business in Russia, which has been operating for more than 30 years. However, it only accounts for a small part of its global revenue. Its businesses in the region, including Russia, Belarus, and Ukraine, account for only about 1.5% of their total revenue.

SAP said it would focus on managing the impact of its exit on more than 1,200 employees in Russia. Mucic said he would finalize plans to halt the activity over the coming months.